Energy Strategy Reviews 24 (2019) 342–357

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Review

Wind energy development and policy in India: A review T

∗
Prem Kumar Chaurasiya , Vilas Warudkar, Siraj Ahmed
Department of Mechanical Engineering, M.A.N.I.T, Bhopal, M.P, India

A R T I C LE I N FO A B S T R A C T

Keywords: India is blessed with immense renewable energy resources in general and wind energy resources in particular.
Wind energy Evaluating the potential of wind energy resources in changing the energy scenario in the country is vital for
Wind power development of wind turbine installations in near future. About 34605 MW capacity wind power plants are
Potential installed so far as up to September 2018. In the wind energy conversion/utilization, India stands on fourth
Installed capacity
position in the world. This paper presents the status and development of wind energy in India. This paper
Policy
discusses the challenges and opportunities in the development of wind energy in the country and also different
Electricity generation
approaches to increase and expand the utilization of wind resources.

1. Introduction Ministry of New and Renewable Energy (MNRE), Government of

Energy demand is a key factor in the economy of a country. The
energy demand in India increased rapidly to an average of 6.4% during
1990–2010, thanks to the significant economic growth in this period
[1]. As a consequence of this drastic increase in energy demand, the
conventional sources of energy are depleting very fast. An ill-effect of
usage of conventional energy sources to meet the demand, is the loss to
environment and public health. The result of pollution like global
warming, skin cancer, etc., has forced the scientific community all over
the world to focus on alternative source of energy which can be re-
newed and should cause considerably less damage to the environment.
Use of renewable energy sources results in less emission of greenhouse
gases and other harmful gases such as SO2, different oxides of nitrogen
and by-products of fossil fuel which are responsible for the environ-
mental degradation, health problem etc. [2,3]. The continuous atten-
tion and increased use of renewable energy may restrict the dependency
of country on imported fossil fuel and will lead India toward self-suf-
ficiency and energy independence. Hence, it is necessary to expand and
utilize the renewable energy sources like wind, solar, biomass, hydro
power, waste to energy etc. [3].
Wind is air in motion. The uneven temperature distribution due to
solar radiation and earth's rotation are the two main causes of wind.
Wind energy is a renewable, inexhaustible and non polluting source of
energy. It is an environment friendly, developing and popular alter-
native source of clean energy [4]. As a source of power, the potential of
wind energy is huge. This is clear from the rapid increase in cumulative
global capacity, reaching 539 GW at the end of 2017 representing
10.7% of cumulative market growth [5].
India and several state governments have been at the forefront of
providing the necessary policy support and a facilitative regulatory
system for the fast and orderly growth of the sector. The MNRE took
various initiatives to promote cooperation with other countries and
funding authorities, like the World Bank, Asian Development Bank,
United Nations Industrial Development Organization (UNIDO) in the
field of renewable energy. Under National Clean Energy Fund (NCEF)
program the ministry has taken up initiatives of wind resource assess-
ment in new and uncovered areas to assess the potential at 100 m level
and 500 new wind monitoring stations across the country. The Ministry
of New and Renewable Energy along with the National Institute of
Wind Energy (NIWE) has announced Indian's Offshore Wind Policy and
also started planning to encourage a demonstration project. The gov-
ernment is keen for the growth of wind energy sector in India.
2. Global scenario of wind energy
International Energy Agency (IEA) reported that in 2015 the wind
power supplied more new power generation than any other technology
[6]. China is a leading nation in wind power installed capacity and has
grown rapidly, from 300 MW in 2000 to 188,232 MW last year and
today accounts for 35% of the world's total wind power capacity [1,5].
Table 1 shows the cumulative installed capacity of top 10 countries. In
2016, the wind energy sector experienced a decline in global installa-
tion. Fig. 1 shows the cumulative wind energy capacity globally
whereas Fig. 2 shows the global annual installed capacity along with
the capacity increase in annual installation.
The top ten leading countries contribute almost 90% of share in

∗
Corresponding author.
E-mail address: prem.chaurasiyaa@gmail.com (P.K. Chaurasiya).

https://doi.org/10.1016/j.esr.2019.04.010
Received 5 November 2016; Received in revised form 25 December 2018; Accepted 5 April 2019
Available online 24 April 2019
2211-467X/ © 2019 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/BY/4.0/).
P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

Table 1
Top 10 countries cumulative installed capacity 2011–2017 [5–8].
S. No. Top 10 Country MW (2011) MW (2012) MW (2013) MW (2014) MW (2015) MW (2016) MW (2017) %
Share

1 PR China 62,364 75,324 91,412 114,609 145,362 168,690 188,232 35

2 USA 46,919 60,007 61,091 65,879 74,471 82,184 89,077 17
3 Germany 29,060 31,308 34,250 39,165 44,947 50,018 56,132 10
4 Indiac 16,084 18,421 20,150 22,465 25,088 28,700 32,848 6
5 Spain 21,674 22,796 22,959 22,987 23,025 23,074 23,170 4
6 UK 6540 8445 10,531 12,400 13,603 14,543 18,872 3
7 Canadae 5265 6200 7803 9694 11,205 11,900 12,239 2
8 France 6800 7564 8254 9285 10,358 10,740 13,759 3
9 Italyab 6737 8144 8552 8663 8958 9257 9479 2
10 Brazild 1431 2508 3466 5939 8715 10,740 12,763 2

a
Rank 6 up to year 2011.
b
Rank 7 up to 2013.
c
Rank 5 up to year 2014.
d
Rank 8 by the end of 2017.
e
Rank 9 by the end of 2017.

Europe, where Germany is a leading country with the capacity addition

Fig. 1. Global cumulative installed wind capacity 2005–2017.
of 6.5 GW in the last year whereas U.S ended the year with 8.9 GW
market and continued to lead in North America. In Latin America and
Caribbean region, Brazil continues to be the promising market for wind
energy with a capacity addition of 2.7 GW. The Africa and Middle East
region added another 621 MW in the last year, however, in 2017
Australia was only the single country to add another 245 MW in the
Pacific regions to take its total installed capacity to nearly 5 GW [5].
Table 2 below shows the leading countries fulfilling electricity de-
mand by wind power in 2015.
Energy policy plays a vital role to mitigate the impacts of global
warming and crisis of energy availability. It is noticed that energy
policy could help increasing wind power generation as well as stimu-
lating the energy industry. It may be stated that without specific energy
policy, a country would not be able to solve the acute problems like
reducing green house gases (GHGs) emission, scarcity of energy, etc.
The attributes of energy policy may include legislation, international
treaties, incentives to investment, the country's targeted energy gen-
eration, guidelines for energy conservation, strategies to stimulate the
energy industry, taxation and other public policy techniques as well as
the focus on new (usually renewable) energy sources. A variety of po-
licies like pricing laws, quota requirements, production incentives, tax
credits, trading systems, etc. have been developed and implemented to
promote the use of renewable energy (RE) [9]. The main objectives of
these strategies are, reducing reliance on fossil fuels, reducing the en-
vironmental impacts of the energy sector and encouraging new in-
dustrial development [10]. Some of the wind energy support policies in
different countries are discussed below in Table 3.

Table 2
Top countries supplying electricity demand by wind power in 2015 [6].
S.No. Country Number of Electricity demand Employment
Turbines covered by wind provided
power (%)

1 Uruguay 614 19.5 500

2 Germany 26,774 12 150,000
Fig. 2. Annual installed wind capacity 2005–2017.
3 United 6680 11 30,000
Kingdom
wind installation and the remaining 10% were added by the rest of the 4 Poland 2600 6.22 8400
5 Turkey 2114 6 –
countries. In 2017 nine countries had more than 10,000 MW of cumu-
6 Netherland 2174 5.6 10,150
lative installed capacity, whereas 26 countries added more than 7 Canada 6066 5 73,000
1000 MW installed capacity, which includes 17 European countries, 4 8 Australia 2062 5 2200
in Asia-Pacific, 3 in North America and 1 in Latin America and African 9 France 5696 4 12,520
countries. 10 USA 48,500 4.7 88,000
11 Brazil 4360 3.5 41,000
Asia continued to precede in the regional market of cumulative 12 PR China 92,981 3.32 280,000
installation with capacity addition of nearly 24.5 GW followed by

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P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

3. Wind power potential in India

Production incentive of 1cent/kWh for the first

The growth of wind energy in India is enormous and proves to be an

Schemes for technology development and

Guarantee a long term power purchase

Investment & production tax credit option to mitigate the challenges to meet electricity demands, en-
vironmental pollution, greenhouse gas emission and depleting fossil

Schemes to join European Union

fuel etc. India has the second largest wind market in Asia after China

Market incentives and subsidy

National Clean Energy Target

CSP Global market initiative

Domestic made component
and fourth amongst the global cumulative installed countries of the
Electricity feed in tariff world after USA and Germany [4]. During this year, 4148 MW wind
Strength (highlight)

projects were commissioned. Wind Energy contributes the major por-

tion of 64.09% of total renewable energy capacity of the country [5].
offshore wind

The Indian government is also focusing on policy development to

agreement
attract investor in wind energy sector. Recently in October 2015, the
10 years

Government of India, along with the National Institute of Wind Energy

(NIWE) formulated and announced the policy framework for the first
–

offshore wind development in India. National Institute of Wind Energy,

Support
R&D

formerly known as Centre for Wind Energy Technology (C-WET) lo-

Yes
Yes

Yes

Yes

Yes

Yes
Yes
–

cated in Chennai serves as a research focal point in the improvement

Yes (total capacity 30 GW, 2020)

and development in the entire spectrum of the wind energy sector in

India [13]. NIWE also coordinate wind energy assessment program and
Yes (25% of supply, 2025)

initially estimated 49 GW of wind potential at 50 m hub-height and on

Target implementation

further survey, at 80 m hub-height, wind potential grows as much as

Yes (200 GW, 2030)

License upto 10 GW

Yes (7.2 GW, 2020)

Yes (12 GW, 2016)

Yes (10 GW, 2020)

102 GW assuming 2% land availability for all states except Himalayan

states, North-eastern states and Andaman and Nicobar Islands where
Yes (10–12%)

0.5% of land availability was assumed for energy estimation at both

heights, however land availability significantly effects the potential in
windy area and recently in 2015, using the advanced meso-micro
–

–
–

coupled numerical wind flow model, and with the corroboration of

almost 1300 actual measurements spread all over India, NIWE an-
Regulatory framework in

nounced estimated wind potential at 100 m hub-height i.e. 302 GW

Legislation (e.g. CO2

assuming actual land availability [13]. Table 4 below shows the state-
Yes (25%, 2025)

Yes (50%, 2030)

Yes (20%, 2020)

Yes (60%, 2050)

Yes (40%, 2020)

wise estimated potential at 80 m and 100 m hub-height.

The 100 m potential assessment has been carried out with realistic
emission)

and practical assumptions and by using a very high spatial resolution of

500 m, using advanced meso-micro coupled numerical wind flow model
2008

along with the corroboration of 1300 actual measurement from all over
–

–
–
–
–

India. In addition, this study also includes actual estimation of land

availability using NRSC 56 m resolution Land Use Land Cover (LULC)
Data (AWiFS) 1:250K scale and with consideration of 6 MW/sq. Km.
Public loans/

The development land features such as roads, railways, Airport, etc.,

financing

land area with elevation more than 1500 m and slope exceeding 20°
Yes
Yes

Yes

Yes
Yes

Yes

Yes

have been excluded. The present potential assessments at 100 m has

–

–
–

been prepared considering Capacity Utilization Factor scale more than

20% and have been classified into 3 ranks (Rank I: Wasteland, Rank II:
Cultivable Land and Rank III: Forest Land). The considerable weightage
Sales or energy tax

has been considered for potential assessment i.e. 80% to Rank I, 30% to
Rank II and 5% to Rank III.
More than 95% of the wind potential is concentrated in five states in
exemption
Summary of Wind Energy policy in different countries [9–11].

southern and western India [2]. This scenario made it possible to

identify the suitable areas for harnessing wind power for electricity
Yes

Yes

Yes
–

–
–
–

–
–
–

generation. Table 5 shows the installed wind energy potential up to

Support (e.g. subsidies)

2017 along with state–wise share of wind energy in total wind power
capacity, Table 5 also shows the tentative state–wise break up of 60 GW
wind power to be attained by 2020.
Wind energy continues to dominate renewable energy industry in
Investment

India. The Indian government in its 12th five-year plan (2012–2017),

had planned to add 15,000 MW of wind power in this period. The
Yes
Yes

Yes

Yes
Yes
Yes
Yes
Yes

Yes

Yes
–

Ministry is keen with the objective to carry out wind resource assess-
Support (FIT/RPS)

ment studies at North-Eastern Region for the development of wind

energy sector. The Ministry has also allocated the separate budget for
RPS (2003)
FIT (1993)

FIT (1991)
FIT (2005)

FIT (2002)

the wind energy system and energy parks. During the year 2015–2016,
Principal

four 50 m level wind monitoring stations were installed in the region, so

RPS
FIT

FIT

FIT

FIT

far 72 monitoring stations have been installed at 20 m, 25 m and 50 m

–

level to assess the realistic potential of the wind resource in the region
Denmark

Germany

Australia
Country

Canada

with the joint efforts of NIWE and state nodal agencies. A cumulative
Algeria
Turkey
Table 3

Japan
China

Korea
Egypt
USA

capacity of 413 kW Small Wind Energy Hybrid Systems had been in-
stalled in North Eastern region including Sikkim by the end of 2017.

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P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

Table 4
Estimated Potential at 80 m and 100 m height (MW) [12,14,15].
S.No. State/UTs 80 m (#$) 100 m

RANK I RANK II RANK III TOTAL

1. Andaman & Nicobar 365 4.12 3.43 0.88 8.43

2. Andhra Pradesh 14497 22525.5 20538.1 1165 44228.6
3. Arunachal Pradesh* 236 – – – –
4. Assam* 112 – – – –
5. Bihar 144 – – – –
6. Chhattisgarh* 314 3.24 57.03 16.31 76.59
7. Diu Damn 4
8. Gujarat 35071 52287.59 32037.83 105.09 84431.33
9. Goa – 0 0.08 0.76 0.84
10. Haryana 93 – – – –
11. Himachal Pradesh* 64 – – – –
12. Jharkhand 91 – – – –
13. Jammu & Kashmir* 64 – – – –
14. Karnataka 13593 15202.36 39802.59 852.4 55857.36
15. Kerala 837 332.63 1102.56 264.38 1699.56
16. Lakshadweep 16 3.5 3.4 0.77 7.67
17. Madhya Pradesh 2931 2216.39 8258.55 8.93 10483.88
18. Maharashtra 5961 31154.76 13747.43 492.15 45394.34
19. Manipur* 56 – – – –
20. Meghalaya* 82 – – – –
21 Nagaland 16 – – – –
22. Odhissa 1384 1666.2 1267.06 160.22 3093.47
23. Pondicherry 120 69.43 79 4.4 152.83
24. Rajasthan 5050 15414.91 3342.62 12.96 18770.49
25. Sikkim* 98 – – – –
26. Tamil Nadu 14152 11251.48 22153.34 394.82 33799.65
27. Uttarakhand* 534 – – – –
28. Uttar Pradesh 1260 – – – –
29. West Bengal* 22 – – – –
30. Telangana – 887.43 3347.52 9.34 4244.29
Total (MW) 102788 153019.59 145742.59 3489.31 302251.49

Note: For 80 m ∗Wind potential has yet to be validated with actual measurements.
#
Estimation is based on meso scale modelling (Indian Wind Atlas).
$
As actual land assessment is not done on a conservative consideration 2% land availability for all states except Himalayan & North eastern states, Andaman Nicobar
Islands and Poor windy states has been assumed. In other area 0.5% land availability has been assumed.

The state-wise break-up capacity is shown in Table 6 [19]. Table 6

The Ministry has adopted plans to carry out realistic assessment of Cumulative installed wind power capacity (kW) of North Eastern states [19].
wind resource in North Eastern region by installing 200 wind mon- S. No State Cumulative
itoring stations, ranging from 50 m to 80 m height. Fig. 3 below shows Installed Capacity
the 50 m wind monitoring station installed at Rombagre, Meghalaya.
Fig. 4 shows the cumulative installed capacity and year wise installed 1. Arunachal Pradesh 7
2. Assam 6
capacity of wind power for the ten years.
3. Manipur 140
4. Meghalaya 201
3.1. Offshore wind power status in India 5. Sikkim 16
6. Tripura 2
7. Nagaland 20
India is blessed with a 7517 km of coastline, the distance 5423 km
8. Mizoram 21
belongs to peninsular India and 2904 km to the Andaman Nicobar, and
Lakshadweep Island, is beginning to discover offshore wind energy as a

Table 5
State wise wind power capacity (MW) [16,17,and18]].
S. No State 2014 (MW) 2015 (MW) 2016 (MW) 2017 (MW) % Tentative by 2020
Share
2017

1. Tamil Nadu 7276 7515 7694 7970 24.2 11,900

2. Maharashtra 4098 4638 4666 4778 14.5 7600
3. Gujarat 3414 3877 4441 5537 16.8 8800
4. Rajasthan 2820 3866 4217 4282 13.0 8600
5 Karnataka 2409 2872 3154 3793 11.5 6200
6 Andhra Pradesh 753 1155 2092 3835 11.6 8100
7 Madhya Pradesh 439 1126 2288 2498 7.6 6200
8 Kerala 55 35 43 51 0.15 –
9 Telangana - – 99 101 0.31 2000
10 Others - 4 4.30 4.30 0.013 600
Total 21,264 25,088 28,700 32,848 100 60000

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P.K. Chaurasiya, et al.
Fig. 3. Wind monitoring station installed at Rombagre, Meghalaya [13].
premeditated energy resource to mitigate energy crisis as well as to
fulfil future energy demands [20]. The initial assessment and wind
resource data collected along the coastline of Rameshwaram and Ka-
nyakumari in Tamil Nadu and Gulf of Khambat in Gujarat have shown a
promising potential for the development of offshore wind power. A
preliminary measurement suggests a possible potential to establish
around 1 GW capacity wind farm along the coastline of Tamil Nadu and
in Gujarat (see Fig. 5). The various advantages of offshore wind have
been discussed by Singh M [20].
Facilitating Offshore Wind in India (FOWIND) project report has
identified two important maritime areas to harness the offshore wind
resources.
• Indian territorial waters, approximately up to 12 nautical miles
(nm) from the baseline
• Beyond 12 nm and 200 nm (Exclusive Economic Zone).
The FOWIND is an association led by Global Wind Energy Council
Fig. 4. Cumulative and year wise wind power installed capacity (MW).
346
Energy Strategy Reviews 24 (2019) 342–357
(GWEC). The other associated partners are Centre for Study of Science,
Technology and Policy (CSTEP), the Gujarat Power Corporation Limited
(GPCL) and the World Institute of Sustainable Energy (WISE). National
Institute of Wind Energy (NIWE) joined the consortium as knowledge
partner. The Ministry of New and Renewable Energy will play role as a
nodal ministry and government entities for the development and use of
Maritime zone under Exclusive Economic Zone and will also look upon
overall monitoring of offshore wind energy, preparation of guidelines.
The National Institute of Wind Energy (NIWE), Chennai is a nodal
agency and will carry out resource assessment, surveys and studies in
EEZ. NIWE will also play a major role to facilitate developers in ob-
taining clearance and NOCs from different Ministries and Departments
of concern [13]. The initial studies and an EU funded study have in-
dicated potential for offshore wind energy in Gujarat and Tamil Nadu
coast, still it requires validation through actual measurement.
India has made progress by identifying eight zones in the coast of
Gujarat and Tamil Nadu. Accordingly, a LiDAR based offshore mea-
surement campaign is initiated in the Gulf of Khambhat, Off Gujarat
cost. Additionally, NIWE has installed meteorological mast along the
coastline for preliminary assessment on the offshore potential. Further,
various agencies, like Indian National Centre for Ocean Information
Service explored estimates based on the data available. The NIWE has
also published an interim report showing the preliminary short-term
measurement result of offshore wind in India. Based on the satellite
data/analysis offshore potential need to be validated or re-checked by
long term measurement to take efficient decision for identifying and
notifying the zones/sub-zones as per offshore policy. The detail of the
selected site at Gulf of Khambhat is tabulated below in Table 7 [21].
The major challenges in India to develop offshore wind power are
high capital cost, the data required for the calculation of wind potential
of suitable sites is not available, unavailability of bathymetric data,
regulatory and policy framework (see Fig. 6).
4. Wind power support program in India
During 2016–17, MNRE had taken various policy initiatives in wind
energy sector that include policies like Introduction of Bidding in wind
P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

Fig. 5. Offshore wind density at 50 m height.

Table 7 deployment of wind energy utilization in the country to fulfil the

Identified site details. country's electricity demand. To achieve the target electricity demand
Site Gulf of Khambhat (Zone -B)
of the country the government launches the various programs to sup-
port the growth of renewable energy such as wind, solar etc. It can be
District/State Amerli/Gujarat seen from Fig. 7 that the support policies have increased wind energy
LiDAR Location 20°45′19.10″ N, 71°41′10.93″E capacity from time to time and has promoted the country to the fourth
Distance from coast 23 km
position globally.
Nearest Airport Diu
Nearest Port Pipavav/Jaffrabad S.N Singh et al. [23] discuss several schemes and policies such as
Nearest Electric substation Ultratech 220 kV financial assistance etc. initiated by the government for promoting,
CRZ (as per 2011 notification) Zone IV developing and support the use of renewable energy source. The gov-
ernment has come up with some schemes they are discussed below:
a) Generation based incentive scheme: The Generation Based
Incentive (GBI) scheme was discontinued in March 2012, but again
reintroduced in August 2013. This scheme has been designed to ac-
complish 15,000 MW target during the 2012 to 2017 period. The main
objectives of GBI includes the broadening of investor base, incentivize
actual generation with the help of a outcome based incentive and to
facilitate entry of large Independent Power Producer and Foreign Direct
Investment to the wind power sector. Under this scheme, wind elec-
tricity producers will receive INR 0.50 per unit of electricity fed into the
grid for a period not less than four years and not higher than ten years
with a capital of INR 100 Lakhs per MW. The total reimbursement in a
year will not go beyond one-fourth of the maximum limit of the in-
centive during first four years. GBI scheme is applicable to the wind
turbines commissioned on or before 01.04.2012, for entire 12th plan.
This scheme has raised Foreign Direct Investment to 100% in wind
energy sector. In 2011, the country added 2300 MW of wind power
capacity, but the discontinuation of GBI in 2012 led the down fall in the
wind energy sector and the figure came down to 1700 MW, but by re-
Fig. 6. Photographic image of 100 m MAST and LiDAR installed at Dhanuskodi, instating GBI the capacity addition of 15,000 MW in next plan may be
Tamil Nadu. achieved. According to IREDA, between March 2010 to March 2012,
2021 MW capacity of wind projects availed the benefits of GBI scheme,
energy sector, Re-Powering policy, Draft Wind-solar Hybrid policy, reaching a total allocation of 4000 MW [13]. More than 5000 MW of
New Guidelines for development of Wind power project, etc [22]. A new capacity was installed during the fiscal years 2010/11 and 2011/
financial outlay of $44.79 million has been expensed in R&D in wind 12, but only 2000 MW projects registered for the GBI benefits. This
energy sector by the government of India in its 11th five-year plan. In scheme above the tariff approved by the Electricity Regulatory Com-
12th five-year plan (2012–2017), government has approved an outlay missions and disbursed on a half-yearly basis through IREDA [24,25].
of $539 million for New and Renewable Energy Programmes. Fig. 7 Fig. 8 shows the fund allocated for wind power development under
shows the various support policies announced by the government of generation based incentive scheme.
India to promote wind energy development. This support policy has b) Accelerated Depreciation: The Accelerated Depreciation (AD)
increased the attention of investors and industrialists for the was introduced in 1994, with a depreciation rate of 100%. In 2002 the

347
P.K. Chaurasiya, et al.
Fig. 7. Time line of policy announcement.
Fig. 8. Fund released for wind power programme under GBI scheme [9].
depreciation rate was reduced to 80% and the scheme was withdrawn
completely in March 2012. In August 2014, the AD was reinstated at the
rate of 80% for the wind power plants installed on or after April 1,
2014. The wind energy industry has been the primary beneficiary, due
to the relative maturity of the technology, resource availability and pre-
existing experience. The AD tax benefit provided the necessary financial
advantage to attract different private sector investment in the wind
energy sector, and facilitated the ingress of a new class of investors
comprised of high net worth individuals (HNIs), corporations, and small
and medium sized enterprises. The rising number of installations also
promoted the growth of domestic wind equipment manufacturing and
other linked services sectors. The AD increases the depreciation on the
assets during the initial years, which allows the asset owner to write off
more of the worth asset during the initial years of ownership, thereby
348
Energy Strategy Reviews 24 (2019) 342–357
decreasing the greater fraction of taxable income. The AD does not
directly provide any monetary assistance to wind power project de-
velopers. However, there are significant post-tax benefits for the in-
vestors, in terms of the timing of cash flows. Reducing tax liability in
the premature years of a useful life period increases profits in the near
term, albeit at the cost of higher taxation in the longer term. This re-
presents a circuitous benefit in terms of the net present value (NPV) of a
project.
Under this scheme the wind power producers intending to avail the
benefit were required to submit all the documentary proof and register
with the Indian Renewable Development Agency (IREDA). IREDA issues
a certificate of eligibility for availing the AD benefit from the Income
Tax Department and a Unique Identification Number for each wind
turbine. Once in process, developers had to provide their generation
data to IREDA. The details of depreciation availed by the companies are
required to submit in Income Tax Department as part of their annual
financial accounts. Fig. 9 shows the structure of the AD scheme [25,26].
c) Tariff Design for Wind Power: The State Electricity Regulatory
Commission (SERC) in line with CERC and similar industry expectations
espouse an approach on a cost plus basis for designing tariff for the
electric energy from wind. The SERC has announced different tariffs for
the procurement of power from wind power projects in different states.
Tariffs for some of the key states are discussed in detail below in Table 8
[23].
Recent amendment in tariff policy provides no inter-state trans-
mission charges as well as the charges generated due to the loss of wind
power during selling of wind power to facilitate the inter-state trans-
mission from one state to another are also waived of under certain
conditions.
• The waiver is applicable for wind power projects which get com-
missioned till March 31, 2019 and for 25 years from the date of
commissioning of the projects. Further, the waiver is also available
for projects having power purchase agreements (PPAs) with discoms
for fulfilment of RPO.
• The ISTS charges is only applicable for wind projects awarded
P.K. Chaurasiya, et al.
1 2
MNRE, GOI Guidelines
Commissioning
Certificate
3 Wind Power
State Nodal
Agency (SNA)
Registration
4
Fig. 9. Accelerated Depreciation scheme structure.
through a competitive bidding process.
The elements which play a significant role in determining tariff are
capital cost, operation and maintenance cost, plant life, capacity utili-
zation factor, depreciation, return on equality, interest on debts, debt-
equality ratio and interest on working capital. The tariff design process
for the state of Madhya Pradesh is shown below as an example [27].
Table 10 below discusses the parameter and various factors for the
design of feed in tariff.
d) Renewable Energy Certificate Scheme (REC) and Renewable
Purchase Obligation (RPO): Government of India launched the re-
newable energy certificate (REC) mechanism to relieve states with high
share of wind power in their grid, wherein, renewable project devel-
opers can vend power to host utilities at tariff corresponding to their
average procurement price and to obtain tradable certificates (REC).
REC mechanism has encouraged the windy states to deploy additional
capacity by reducing the procurement cost of wind. It began in
February 2011 and almost 52% of total capacity of 4470 MW wind
power received REC registry. The issuance fee of an REC has been re-
duced from INR 10 to INR 4 per certificate by the Central Electricity
Regulatory Commission (CERC). The new fee is effective from 1 April
2014. The Renewable Purchase Obligation (RPO) varies from state to
state and is generally in the range of 3–12% and can go higher de-
pending on the orders of SERCs (for the year 206–17). However, there
are some states which are not able to achieve RPO levels required by
the SERCs. A major problem in RPO and REC provision has been the
failure of the regulators to enforce these provisions. The REC market
has not taken off, though institutionally it is established [25,28].
e) Forecasting and Scheduling Mechanism: The CERC has noti-
fied a policy for the mechanism of scheduling and forecasting in case of
inter-state transmission of wind power. The state of Gujarat, Tamil
Nadu, Madhya Pradesh, and Odisha, has already notified regulatory
draft for intra-state transmission of wind power. The state of Andhra
Pradesh, Chhattisgarh, Jharkhand, Karnataka, and Rajasthan has fina-
lized their regulations. The forecasting and scheduling exercise has
been already conducted in Tamil Nadu recently by NIWE, Chennai
Energy Strategy Reviews 24 (2019) 342–357
NIWE
Technical
Approval &
Certification
Financial
Details
5
Income Tax
Project Department GOI
Approval to
claim AD
Issuance of
AD eligible
certificate
IREDA
which resulted in 12 Billion Unit of wind power evacuation during
2016–2017 compares to around 7 Billion Unit earlier. For accurate
forecasting and scheduling, it is essential to put in a metering and
communication infrastructure at every pooling station for real time
generation of data.
f) Repowering Policy: In order to optimally utilize the wind energy
resources, repowering is crucial. The ministry has drafted a repowering
policy for Wind turbine generators of capacity 1 MW and below for
repowering. Under this policy, IREDA will provide an additional in-
terest rate rebate of 0.25% for repowering projects. As per the repow-
ering policy, all other benefits are also available to the repowered wind
projects, i.e. accelerated depreciation or GBI are applicable. Additional
generation could either be purchased by discoms at Feed-in-Tariff ap-
plicable in the state at the time of commissioning of the repowering
project or allowed for third party sale [28].
g) Wind-Solar Hybrid Policy: MNRE issued the draft of
Wind–Solar Hybrid Policy with the objective of providing a framework
for promotion of large grid connected wind-solar PV system for optimal
and efficient utilization of transmission infrastructure and land, redu-
cing the variability in renewable power generation, and achieving
better grid stability. The objective of this policy is to achieve wind-solar
hybrid capacity of 10 GW by 2020 and to encourage new technologies,
methods and way-out involving combined operation of wind and solar
PV plants [28].
h) Wind Bidding Scheme: To enable discoms of non-windy states
to fulfil their non-solar RPO obligation through purchase of wind power
at a tariff determined by transparent bidding process. This scheme was
sanctioned by MNRE on June 14, 2016 for setting up of 1 000 MW Inter-
State Transmission System (ISTS) connected Wind Power Projects. The
wind bidding guidelines under Section 63 of Electricity Act, 2003 issued
by the Ministry of Power, enables the states to bid for wind power
projects. The first wind bidding was concluded at low tariff of INR 3.46
per kWh of wind energy. The SECI issued letter of allocation (LoA) to
the selected five bidders on April 5, 2017, and the projects under this
Scheme are likely to be commissioned by September 2018. The wind
tariff in India touched the lowest level of INR 2.64 per kWh in the
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 P.K. Chaurasiya, et al.

Table 8
Feed in Tariff across different states [18].
State Feed in Tariff (INR) PPA Tenure (Years) Third Party Sale Capital subsidy/other incentives
And Captive usage

Andhra Pradesh 3.50 25 Permitted Industrial status. Reactive power: 10 paise per kVARh up to 10% & 25 paise per kVARh above 10%.
Gujarat 4.23 25 Permitted Reactive power < 10% energy exempted, then 10 paise/kVARh.
Reactive power > 10% of energy exported, then 20 paise/kVARh.
Haryana 6.14 25 Permitted –
Karnataka 3.70 10 Permitted No electricity duty or 5 Years. Reactive Power: 40 paise per kVARh.
Kerala 3.64 20 Permitted Depreciation: 5.83% p.a. for the first 12 years and remaining spread over useful life.
Madhya Pradesh 4.35 25 Permitted No Electricity Duty for 5 years. Reactive Power: 27 paise for kVARh. Reactive Power: 25 paise per
kVARh.
Maharashtra Wind Zone I- 5.67 (without AD), 4.86 (with AD) 13 Permitted Power evacuation arrangement, approach road, electricity duty, loan to cooperative societies.
Wind Zone II- 4.93 (without AD), 4.23 (with AD)

350
Wind Zone III- 4.20 (without AD), 3.60 (with AD)
Wind Zone IV- 3.78 (without AD), 3.24 (with AD)
Odisha 5.31 (without AD), 5.36 (with AD) 13 Permitted –
Punjab 5.96 (w/o AD) 5.36 (with AD) 10 Permitted –
Rajasthan 5.18 (without AD), 4.90 (with AD)-for projects in Jaisalmer, Jodhpur 25 Permitted Exemption from electricity duty @50% for 7 years. Reactive power 5.75 paise per KVArh with
and Barmer districts. escalation of 0.25 paise per year.
5.44 (without AD), 5.14 (with AD)-for other districts
Tamil Nadu 3.51 20 Permitted Reactive power: 25 paise per kVARh up to 10% & 50 paise per VARh above 10%.
Uttarakhand Wind Zone I – 5.15 (without AD), 4.75 (with AD) 25 Permitted
Wind Zone II – 4.35 (without AD), 4.00 (with AD)
Wind Zone III – 3.65 (without AD), 3.35 (with AD)
Wind Zone IV – 3.20 (without AD), 2.90 (with AD)
West Bengal 5.70 10 Permitted Reactive power: 20 paise per kVARh

Wind FIT values on the basis of wind zone, as determined by the central commission for financial years, 2014–15, 2015–16 and 2016–17 is shown in Table 9.
Energy Strategy Reviews 24 (2019) 342–357
P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

Table 9 to promote wind energy sector, under this scheme any wind project
Wind zone FIT value in India [18]. generating power before 31 March 2013 are allowed to accept tax
Wind Zone Annual WPD (W/m2) Feed in Tariff value (INR/kWh) holiday for the first ten years under section 80 I A of the Income-Tax,
Government of India. This scheme has been deployed to the under-
2013–14 2014–15 2015–16 takings which started distribution, generation and transmission of
power by 31 March 2016.
Wind Zone 1 < 200 6.03 6.36 6.57
Wind Zone 2 201–250 5.49 5.78 5.98
Wind Zone 3 251–300 4.83 5.08 5.26 5. Power purchase agreement
Wind Zone 4 301–400 4.02 4.24 4.38
Wind Zone 5 > 400 3.77 3.97 4.11 PPA is a contract between two parties, one which generates elec-
tricity (the seller) and one which purchase electricity (the buyer). The
PPA defines all the commercial terms for the sale of electricity between
second wind auction (1000 MW) conducted by SECI on October 4, 2017
the two parties, including when the project will begin commercial op-
[28].
eration, schedule for delivery of electricity, penalties for under delivery,
i) Offshore Wind Energy Policy: This policy promotes optimum
payment terms, and termination. A PPA is the principal agreement that
exploitation of offshore wind power generation. The government of
defines the revenue and credit quality of a generating project. Standard
India is targeting to have a generating capacity of 100 GW by 2022
provisions as part of the PPA includes the following [30].
through this mission. The policy supports the development of offshore
wind energy through fiscal incentives, allowing Foreign Direct
Investment (FDI) participation, Public Private Partnership, and inter- • As the PPA period influences the tariff by determining the period
over which the investment is returned to the investor, longer PPA is
national collaborations. The National Offshore Wind Energy Policy of-
favoured for lower tariffs. The PPA period should not be less than 25
fers various fiscal incentives like relaxation in custom duty, excise duty
years from the date of the SCD or from the date of full commis-
exemption for the purchase of technology and equipment and also of-
sioning of the projects, whichever is earlier. The PPA may be further
fers exemption from service tax for conducting service such as resource
extended on such term and conditions as mutually agreed between
assessment, use of survey vessel and installation of vessels and on stu-
the parties signing the PPA and approved by Appropriate
dies conducted by third parties (oceanographic and environmental
Commission.
•
impact). The policy also indicates Tax holiday scheme offered for the
The WPG will declare the annual CUF of its Project at the time of
first ten years of wind power generation from offshore. The major ob-
signing PPA and will be allowed to revise the same once within first
jective of offshore wind policy is tabulated below (see Table 11) [13].
year. The declared annual CUF should not be less than 22% in any
j). Green Energy Corridors: The maximum wind power potential is
case. In case, the project supplies energy less than the energy cor-
concentrated in 7–8 wind resource-rich states wherefrom wind power is
responding to the minimum CUF, the WPG will be liable to pay
evacuated. This requires strengthening of intra-state as well as inter-
penalty to the procurer for the shortfall in availability of energy.
state transmission infrastructure. The Green Energy Corridors Project
However, this will be relaxable to the extent of grid non-availability
plays a significant role in setting up transmission requirement for re-
for evacuation, which is beyond the control of WPG. In case, if the
newable power capacity addition. Under this scheme the various intra-
WPG generates more power more than the delivered CUF than the
state transmission infrastructure projects of total cost over 10,000
WPG will be free to sell it to any other entity provided first right of
crore, in eight states, has already been approved and the central gov-
refusal will vest with the Procurer(s).
ernment is providing 40% of the project cost as grant from National
Clean Energy Fund and another 40% of the project cost is available as • The WPG will be free to re-power their plants during the PPA
duration. However, the Procurer will be obliged to buy power only
soft loan through the German Bank [28].
as per terms of PPA.
•
Additionally government with an aim to attract wind power com-
The PPA shall contain provisions with regard to force majeure de-
ponent manufacturing industry, has increased concession on Basic
finitions, exclusions, applicability and available relief on account of
Customs Duty from 5% to 10% of forged steel rings used in the pro-
force majeure as per the industry standards. The WPG shall intimate
duction of bearing of wind-operated generators. The Excise duty was
the Procurer about the occurrence of force majeure within 15 (fif-
brought down from 12% to Nil on forged steel rings used in the man-
teen) days from the start of force majeure and the Procurershall take
ufacture of bearings of wind-operated electricity generators [29]. The
a decision on his claim within 15 days of the receipt of the in-
government launched various attractive scheme called as Tax holiday
timation.

Table 10
Structure of tariff calculation for wind power in Madhya Pradesh, India.
System Factor Involved Value decided by commission

Capital Costs (Rs. Lacs/MW) including cost of Cost of land, plant and machinery, civil works, erection, commissioning, 596
power evacuation cost of power evacuation and other related expenses
Capacity utilization Factor (%) Wind regime of the site, quality, capacity and age of machines installed, 20
height of the hub, length of blade (swift area) etc.
Operation & Maintenance Expenses (Rs.Lacs per Comprise manpower expenses, insurance expenses, spares and repairs, 1% of capital cost in 1st year with an escalation of
annum) consumables and other expenses (statutory fees etc.). 5.72% for each year thereafter
Plant Life (years) 25 – 25
Depreciation (%) – 7% per annum for first 10 yrs and balance 20%
Return on Equity (%) – 20% pre-tax
Interest on Debt (%) per annum – 12.75
Debt-Equity Ratio 70–30
Interest on working capital on (%) O&M expenses for 1 month 13.25
Receivables equivalent to 2 months of energy charges based on normative
CUF
Maintenance spares @15% of O&M expenses
Discounting rate (%) – 10.2

351
P.K. Chaurasiya, et al.
Table 11
Objectives of the policy for development of offshore wind farm.
S.No. Objectives
1 To Explore and Promote Deployment of Offshore Wind Farms in the Exclusive
Economic Zone (EEZ) of the country, including those under Public Private
Partnership.
2 To Promote Investment in Energy Infrastructure
3 To Promote Spatial Planning and Management of Maritime Renewable Energy
Resources in the Exclusive Economic Zone of the country through suitable
incentives.
4 To Achieve Energy Security and to reduce carbon emission.
5 To Encourage Indigenization of the Offshore Wind Energy Technology.
6 To Promote Research and Development in the Offshore Wind Energy Sector.
7 To facilitate development of Project EPC and Operation & Maintenance with
regard to offshore wind industry.
8 To develop coastal infrastructure and supply chain to support heavy construction
& fabrication work and the Operation & Maintenance activities.
• Generation Compensation for Off-take Constraints: The Procurer
may be constrained not to off-take the power scheduled by WPG on
account of Grid unavailability or in the eventuality of a Back-down.
The WPG and the Procurer shall follow the forecasting and sche-
duling process as per the regulations notified by Appropriate
Commission. The Government of India, as per Clause 5.2(u) of the
Indian Electricity Grid Code (IEGC), encourages a status of ‘must-
run’ to wind power projects. Accordingly, no wind power plant duly
commissioned should be directed to back down by a Discom/Load
Dispatch Centre (LDC). In case, such eventuality of Back down arises
like consideration of grid security or safety of any equipment or
personnel or other such conditions, the WPG shall be eligible for a
Generation Compensation from the Procurer.
• Payment Security: Case 1. Direct procurement by Distribution li-
censee from WPG: The Distribution licensee shall provide payment
security to the WPG through Revolving Letter of Credit (LC) of an
amount for a period not less than 1 (one) months' average billing
from the Project under consideration and Payment Security Fund,
which shall be suitable to support payment for at least 3 (three)
months' billing of all the Projects tied up with such fund or in ad-
dition to a) & b) above, the Procurer may also choose to provide
State Government Guarantee, in a legally enforceable form, ensuring
that there is adequate security to the WPG, both in terms of payment
of energy charges and termination compensation if any.
Case 2. Intermediary-Procurer procures from the Wind Power
Generator and sells to the Distribution licensee: a) The Intermediary
Procurer shall provide payment security to the WPG through Revolving
Letter of Credit (LC) of an amount for a period not less than 1 (one)
months' average billing from the Project under consideration and
Payment Security Fund, which shall be suitable to support payment
of at least 3 (three) months' billing of all the Projects tied up with such
fund. b) The Distribution licensee shall provide payment security to the
Intermediary Procurer through Revolving Letter of Credit (LC) of an
amount not less than 1 (one) months' average billing from the Project(s)
under consideration and State Government Guarantee, in a legally
enforceable form, such that there is adequate security, both in terms of
payment of energy charges and termination compensation if any.
6. Advancement in technology
With the modern technology incorporated in the wind turbines,
wind power generation limits have been uplifted. Hence, penetration
level of wind power has become more significant and is leading to more
complex, sophisticated and reliable interconnection requirements.
Initially, wind power did not have any serious impact on the power
system control, but now due to its size, wind power has to play a much
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Energy Strategy Reviews 24 (2019) 342–357
Essential Components
Preliminary Resource Assessment and preliminary oceanographic & bathymetric
studies for demarcation of blocks
Environment Impact Assessment (EIA) study of proposed Offshore Wind Farms
regarding aquatic life, fishing etc., studies relating to navigation, undersea mining
and related Exploration/exploitation activities and other users of the sea.
Detailed studies & surveys - These studies will determine the construction costs for
special foundations, special ships for both operation and maintenance requirements.
Sea Bed Lease Arrangement. Statutory Clearances and NOCs.
Grid Connectivity and Evacuation of Power (both offshore and onshore).
Technology, Financing and Insurance and Incentives.
Security of offshore installations and confidentiality of the data collected during
studies and surveys.
Oversee working and to provide necessary support to the Nodal Agency i.e. NIWE for
smooth functioning.
more active part in grid operation and control. The unit size of ma-
chines has gone up to 3.00 MW. Over 50 different models of wind
turbines are being manufactured by more than 20 different companies
in India. The technology used in wind turbines is based on a squirrel-
cage induction generator connected directly to the grid. Power pulsa-
tions in the wind were almost directly transferred to the electrical grid
by this technology [31]. The top 10 WT manufacturers in 2015 and
their priority generator technologies are illustrated in Fig. 10 [32].
a) Doubly-Fed Induction Generator (DFIG): It gives a variable
speed controlled wind turbine with a Wound Rotor Induction Generator
(WRIG) and partial scale power converter on the rotor circuit. In this
configuration, stator is directly connected to the grid, while a partial
scale power converter controls the rotor frequency and the rotor speed.
The power rating of this partial-scale frequency converter defines the
speed range. Moreover, this converter performs reactive power com-
pensation and provides a smooth grid interconnection. The smaller
frequency converter makes this concept attractive from an economical
point of view. In this case, the power electronics is enabling the wind
turbine to act as a dynamic power source to the grid. However, its main
drawbacks are the use of slip-rings and the protection schemes/con-
trollability in the case of grid faults [31].
b) Fixed speed Induction Generators (FSIG): The fixed speed
induction generator (FSIG) consists of squirrel cage induction generator
that is coupled through a gearbox to the wind turbine rotor. The ad-
vantages of FSIG are, it is robust, easy and relatively cheap for mass
production. It enables stall-regulated machines to operate at a constant
speed when it is connected to a large grid, which provides a stable
control frequency. Although, the stall control method is usually used in
combination with the fixed speed FSIG for power control, the active
stall control or pitch control have also been applied. The various dis-
advantages of FSIG are lack of control possibilities of both active and
reactive power, gearbox breakdown due to large mechanical loads and
the large fluctuations in output power. Due to these reasons, wind
turbine manufacturers are increasingly interested in variable speed
devices [31].
c) Synchronous Generators (SG): Synchronous generators (SG) are
considered one of the most-promising technologies for multi-mega watt
(MW) wind energy conversion systems. The synchronous generators
can be classified into the electrically excited synchronous generator
(EESG) and the permanent magnet synchronous generator (PMSG).
Excitation is provided either with rotor windings or permanent mag-
nets. Hence, full scale power converters (FSCs) are needed, and a re-
duced scale converter for the excitation is required for synchronous
machines without permanent magnets [31].
d) Maximum Power Point Tracking Technique (MPPT): To en-
sure the higher operational efficiency of wind energy conversion system
using DFIG and power electronic converter the suitable maximum
P.K. Chaurasiya, et al. Energy Strategy Reviews 24 (2019) 342–357

Fig. 10. Top 10 Wind turbine manufacturers in 2015.

power point tracking (MPPT) technique is required to compensate un-
known or time-varying parameters, which are causes of poor efficiency.
The principle aim of MPPT controller is to maximize the generated
output electric power and generator efficiency without a low speed or
high-speed shaft encoder, eliminating concern about sensor reliability.
The various possible MPPT techniques which are currently in practice
are identified as Power system stabilizers (PSS) in DFIG system, which
improves the damping of oscillations in the network, adjusting the DC/
DC converter duty cycle, Power Signal Feedback (PSF) control for dy-
namic stability control, matrix converter in DFIG [32].
Fig. 11 shows the evolution of wind turbine technologies and power
electronics showing how the evolution of techniques has added the
capacity addition in wind energy potential. Today, due to the latest
technology wind turbines and wind power plants have increased both in
size and number which has increased the power production.
7. Barriers in development of wind energy technology in India
The principle of extracting wind energy is converting the kinetic
energy of wind using rotating turbine and by using a generator further
converting it into electrical energy. It seems simple but there are var-
ious barriers in developing the wind energy sector, which include so-
cial, environmental and techno-economic impacts [34]. Fig. 12 shows
the immediate issues which need to be overcome in harnessing wind
power. Some of the key challenges in the development of wind energy
in India have been discussed below.
a. Lack of Evacuation and Transmission Infrastructure: The lack
of adequate evacuation and transmission infrastructure is one of the
biggest barriers in harnessing the wind energy potential. For instance,
attractive potential wind sites in Rajasthan, Gujarat, and coastal Tamil
Nadu remain less tapped because of lack of adequate grid evacuation
capacity and transmission infrastructure. Power evacuation system,

Fig. 11. Wind turbine evolution and trend of power electronic conversion (blue indicates power level of converters) in the last 30 years [33]. (For interpretation of
the references to colour in this figure legend, the reader is referred to the Web version of this article.)

353
P.K. Chaurasiya, et al.
Fig. 12. Nation-wide immediate issues in harnessing wind potential.
which includes sub-stations, transformers and transmission links are not
adequate to carry the power generated from high wind areas to load
centres. The other part is that frequent fluctuation in wind generation
leads to frequent unscheduled interchanges at the state level and from a
grid discipline and grid security point of view it becomes a major issue.
The issue of evacuation and transmission infrastructure has been dealt
in detail in subsequent sections on states including lack of commu-
nication network in distant areas, regarding water and roadways in
order to carry towers, larger and heavier components to wind farms.
Transmission and distribution lines are not sufficient for power eva-
cuation which restricts the wind farm to get connected and grid in-
tegration requires serious attention [35,36].
b. Inadequacy of GBI and Uncertainty to its Continuity: The
industry is still recovering from the recent experience of withdrawal of
both AD and GBI. At the state level also there have been frequent
changes in policies on open access, cross subsidy surcharge, banking
and wheeling, group captive etc. These changes are often made with
utter disregard towards projects that have been built and invested in,
based on certain assumptions of policy. Such changes can make busi-
nesses completely unviable. These changes in policies also have a det-
rimental impact on investors’ overall investment. Refusal to allow open
access to generation projects within the state or a heavy cross subsidy
burden on third-party sales are such state policies which are not pub-
licised but are implemented. Such curbs have slowed down project
development at state level significantly [36,37].
c. Incoherent Resource Assessment: A number of state nodal
agencies are not able to establish and maintain a technical library, a
data bank, or an information centre or collect and correlate information
regarding wind energy potential. In the past, the National Institute of
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Energy Strategy Reviews 24 (2019) 342–357
Wind Energy (NIWE), Chennai, has initiated a various resource as-
sessment, but the basic data on the actual generation volume of wind
energy is not realistic as can be seen from the case of Tamil Nadu where
the actual installed capacity has already surpassed the estimated po-
tential [38].
d. Land Availability: The land availability issue is a challenge for
wind power generation in India. The conversion of land (if available)
from agricultural to non agricultural and receiving clearance (for pro-
tected area) from authorities is time-taking process and difficult task.
There is a need to analyse the land use and land cover data of India to
identify the region most suitable for wind farm development
[37,38,and39]].
e. RPO: RPO compliance has not been strictly enforced or properly
monitored, directly affecting the REC mechanism. Although many
projects have been registered under the REC and an increasing number
of RECs has been issued, the prices have been low with a majority of
RECs being sold at the floor price or not sold at all [38,39].
f. Inadequate Forecasting Tools and Grid Management: In the
existing regulatory framework, resource-rich states are expected to take
higher wind purchase obligation and buy power at a preferential tariff.
That is why states like Tamil Nadu and Rajasthanare increasingly
finding it difficult to absorb higher quantum of wind power during the
higher windy season and low demand period. It is partly due to out-
dated and often inadequate infrastructure and in part due to a lack of
penalization for non-compliance with forecasting and scheduling re-
quirements. In this regard, linking of the Southern Grid with the
National Grid, freely allowing open access and third party sale within
and outside the state/region as well as improving forecasting tools will
be critical for further harnessing the potential of wind power in the
P.K. Chaurasiya, et al.
country [37].
g. Effect of Legal proceedings or Investigations: Anti-corruption
practices and issues, commercial disputes, criminal or civil proceedings,
and other integrity legislation have a negative effect on wind power
projects. There is considerable damage to the company's reputation if
there is violation in rules and regulation and could result in fines or
penalties, the suspension or shutdown of ongoing operations. The time
period to integrate the legal proceedings results in delays or failure in
completion of project [38,39].
h. Uncertainty And Divergence In Feed-In Tariffs Approved By
SERCs: Different states have different laws and regulations which im-
poses inflexible standards and requirement and potentials liabilities.
Because of the difference in approach, there are wide variations in the
tariffs (as can be seen from Table 8), leading to uncertainty for the
investors as well as non-viability of the projects in certain states in
India. For instance, it is observed that feed-in tariffs of INR 3.50/kWh in
the state of Andhra Pradesh is low, leading to lack of capacity addition
in the state in spite of the high wind potential in the state. It should be
noted that the feed-in tariff in Andhra Pradesh based on the tariff
regulation approved by CERC is INR 4.63/kWh as compared to Rs.
3.50/kWh approved by APERC. Further, the issue of longer control
period and delay in RE tariff revisions at the state level are also a matter
of concern [37,38].
i. Supply chain Issues: The supply chain issue plays a significant
role in retarding the development of wind energy sector. Wind power
developers have to stay focussed in identifying suppliers that can pro-
vide special equipment and quality material on time. The potential risk
factors that may be the cause of crisis in supply chain are (1) delays and
inflexibility of supply source, (2) systems information infrastructure
breakdown, (3) procurement and exchange rate risk, (4) receivables
and number of customers, (5) inventory holding cost, demand and
supply uncertainty, (6) capacity, (7) service suppliers, (8) key compo-
nent manufacturers, (9) procurement and environment. Managing
supply chain risks are complicated because sometime risks are often
interconnected. Disruption caused in supply chain refers to the risks
which affect the movement of efficient process of information, mate-
rials and products [36,39].
7. Measures to increase wind penetration
a. Resource Assessment: The correct assessment of wind resource
potential at higher heights, sustainability of the project over the de-
signed life time, project feasibility will indirectly boost the energy
generation through wind. It is required to make sure the quality of the
data recorded at a particular site. The new commercially available re-
mote sensing instrument such as Sonic Detection and Ranging (SODAR)
and Light Detection and Ranging (LiDAR) can play a vital role in ac-
curate assessment of wind resources at higher heights. Both SODAR and
LiDAR work on the Doppler-shift principle. The SODAR send acoustic
pulses into the atmosphere and LiDAR instrument transmits a light
beam into the atmosphere. Both instruments receive the backscattered
signals and compare the Doppler-shifted frequency between the trans-
mitted and the reflected signal [40]. The remote sensing technology has
proven its ability to measure wind characteristics [41,42].
b. Repowering: Many of India's wind farms were set up during the
early 90s. Thus, the best wind power sites in India, older turbine models
of smaller rotor diameters and lower hub heights with lattice structure
towers were used. New WTG models are able to reach higher efficiency
levels due to better rotor and airfoil designs. IEC Class III turbines with
larger rotor diameters and better control systems allow increased en-
ergy capture and turbine reliability. Keeping all this in mind, an active
repowering strategy and policy is very much required in the country.
Repowering of old wind farms would lead to significantly increase in
annual energy yield from the same patch of land where old wind tur-
bines are functioning. It is assessed that Repowering potential is of the
order of 5000 MW and with the passage of time more and more wind
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Energy Strategy Reviews 24 (2019) 342–357
farms could possibly qualify for Repowering [28].
c. Grid Integration: To achieve high penetrations of wind, one
would not only need strengthening and expansion of grid but also op-
erations and management would have to be completely revamped. The
responsibility to resolve grid problems rests both with the utilities and
the project developers and technology providers. In order to achieve the
goals of scaled up capacity addition, these issues would have to be re-
solved in a phased manner. Renewable Energy incursion in the grid
does throw up some formidable problems to the grid in the lower
management on account of unpredictable wind power generation.
However, an effective and efficient way of Grid Management can de-
finitely offset the minor challenges posed by wind power. The elec-
tricity regulatory commission order should be strictly followed for
strengthening grid network connectivity and evacuation arrangement.
An accredited certify authority should approve all wind turbines for the
compliance of grid regulation including power quality, low voltage
ride, active/reactive power control and other requirements as rules and
standards [23].
d. Certainty of Support Policy: There is a need for uniform policies
across the country as much as possible and these policies should be
applicable over a reasonable period of time (5 years) to achieve fruitful
results. Changes in tariffs and any other charges should be transparent
and there should be a long-term visibility.
Wind projects should be considered as critical assets to minimise
thefts and related damage as the installations are located in inhos-
pitable/sparsely populated far flung areas.
Wind power projects need to be exempted from obtaining “Consent
to Establish” from individual departments as the allotments are made
by the single window Nodal Agency of the states. There is a specific
need for separate legislative enactment in the form of Renewable
Electricity Act in the quickest possible time [24].
e. Availability of Land: The process of making land dedicated for
windfarms should be made simpler. Also approvals and clearances such
as land title conversion should be examined in detail to find ways of
streamlining acquisition and usage of lands for the development of
wind farms [36]. The following measure may be adopted for land
availability.
• Easing of forest area land acquisition formalities and expediting the
same.
• Exemption from wildlife zone applicability, migratory bird route
limitations, air flight path restrictions. Not to be applicable for wind
power.
• No ceiling limitation for land acquisition under wind projects
f. Central Procurement: One of the ways of enhancing capacity
addition in windfarms and also investments in sector is to identify large
wind zones for wind parks or wind-solar hybrid parks that are initially
developed by the state government or in PPP mode. Electricity gener-
ated can be procured by a central government agency and then made
available to state governments. Such projects can be connected to
PGCIL. Wind parks or wind – solar hybrid parks with central procure-
ment of electricity and initial development by the State government
could be one of the ways to minimise risks in wind power projects and
to attract investments [28].
f. RPO Compliance and Real-time Monitoring: To encourage and
attract the local population to adapt renewable energy it is necessary to
focus on net metering policy and real-time monitoring. The installation
of Availability Based Tariff (ABT) meter with telecommunication fa-
cility at substation can play a significant role in accurate metering. The
important grid parameters on real time basis should be prudently sent
to state/regional load centre. Binding of RPO compliance will im-
mediately result in much relief to a large number of IPPs and will pave
the way for more investments.
• Enactment of renewable energy Act will mitigate difficulties of RPO
P.K. Chaurasiya, et al.
implementation.
• States should fulfil RPO in line with NAPCC Targets.
• REC offtake should have a good incentive formula for fillip in the
market.
• Procurement of REC by a central agency at CERC determined tariff.
g. Offshore wind power development: The estimated offshore
wind power contribution in term of electricity supply is higher. The
share of wind energy would increase to a large extent in total renewable
energy capacity of the country through the development of offshore
wind power technology. The regulatory authorities should formulate
policy framework and support program in a manner that it should at-
tract investors, academician, research personal and public sectors. The
policymakers can consider designing an Energy Standard policy that
includes an offshore wind set-aside. The set-aside can provide direct
support to a newer market segment in a boarder way by supporting
offshore wind investment.
h. Streamlining Permit Processes: Policymakers can support wind
investment through centralizing review and permitting of wind pro-
jects. Streamlined permitting involves limiting the number of agencies
engaged to reduce the burden on developers to contact and receive
permits from many different agencies. Further, to support streamlined
permitting and approvals, fully informing and integrating local com-
munities into wind development decision-making processes is critical,
even when conducted at the regional or national level [28].
i. Hybrid Technologies: The interconnection of wind energy with
other renewable energy (like solar energy) and storage technologies in
line with the policy issued by state/central government may result in
efficient utilization of transmission infrastructure and may increase
capacity utilization factor.
8. Conclusion
Wind energy is friendly to the surrounding as compared to fossil
fuels, as the latter disturbs the environment by releasing carbon di-
oxide. When combined with solar electricity, wind energy becomes
great source for the developing countries which provides reliable and
steady supply of electricity. Wind energy is one of the solutions for
rising energy demand. It has great potential and easy to manage. Every
wind turbine lasts for 20–25 years and as long as the wind blows, the
wind turbine can harness the wind to create power. Though wind tur-
bines can cause complaints and fatalities of wildlife, it is one of the
energy solutions. India has huge potential of renewable energy sources
and due to government involvement there is sudden growth in renew-
able energy sector. The strategy for achieving this enhanced goal de-
pends on the participation of NGOs, manufacturers, R&D institutions
and entrepreneurs.
In this study both actual and provisional scenario for wind energy in
India has been discussed. The above discussion shows that the condition
of wind system is satisfactory in India but requires additional attention
for better growth. Although, the cost diminution and technological
development of systems in recent years has been encouraging. To allow
the widespread application of emerging technology such as remote
sensing techniques for resource assessment in complex, hilly terrain and
in offshore region, there is a need for further R&D improvements.
Accurate and consistent measurement in lieu with better policy will
encourage the investors in the development of offshore wind energy
sector in India. The country will reach “Grid Parity” in wind energy in
2022. For further development it is essential to focus on a specific
technological system, accurate measurement, domestic manufacturing
and logistics which requires better policy measurement and requires
more effort of the government.
Acknowledgement
The authors would like to thank Maulana Azad National Institute of
356
Energy Strategy Reviews 24 (2019) 342–357
Technology for providing the facility to carry out this study.
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